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Trump Family-Backed Crypto Firm Seeks Federal Bank License for Stablecoin

Published Jul 12, 2026
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Summary:
  • World Liberty Financial, co-founded by Donald Trump Jr. and Zach Witkoff, has applied for a national trust bank charter from the OCC to issue its dollar-backed stablecoin under federal regulation.
  • The USD1 stablecoin has $3.3 billion in circulation and operates across 10 blockchains.
  • In December 2025, the OCC conditionally granted trust charters to BitGo, Circle, Fidelity Digital Assets, Paxos, and Ripple, paving the way for this application.

But the regulator deciding the case was appointed by the president, who is a co-founder emeritus of the same venture.

The application comes amid a shifting regulatory landscape for digital assets. The OCC's conditional approvals for five crypto firms in December 2025 signaled a more accommodating federal stance, and the newly enacted GENIUS Act sets rules for payment stablecoins, making a federal charter attractive for issuers seeking compliance.

The Charter Application

World Liberty Financial, a crypto project linked to the Trump and Witkoff families, has submitted an application to the OCC seeking a national trust bank charter. A national trust bank charter is a license from the federal government to act as a custodian of assets, similar to a traditional bank but focused on holding and managing property for customers.

The proposed financial institution, to be called World Liberty Trust Company (WLTC), would operate under that charter. Zach Witkoff, a co-founder of World Liberty Financial, would serve as president and chairman. The company wants to use the charter to bring its stablecoin, USD1, under full federal oversight. A stablecoin is a digital token designed to be worth $1 at all times.

Zach Witkoff said in the company's release: "A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity." The move also positions the venture for compliance with the GENIUS Act, a new law that will regulate payment stablecoins.

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Mack McCain, who serves as general counsel for World Liberty Financial and proposed trust officer for WLTC, added: "WLTC will operate under that same framework, with segregated customer assets, independent reserve management, and regular examination."

Industry Concerns and Regulatory Debate

The banking industry is watching closely. Rob Nichols, the American Bankers Association's president and CEO, raised red flags. "We are concerned that expanding the trust charter in this way, particularly for entities that may not engage in traditional fiduciary activities, could blur the lines of what it means to be a bank and create opportunities for regulatory arbitrage," Nichols said. "Clear answers are needed to ensure the public and policymakers understand how these charters will be supervised and how risks will be mitigated."

OCC Comptroller Jonathan Gould, a Trump appointee, pushed back. "What they fail to acknowledge is that the OCC has permitted national trust banks to engage in nonfiduciary custody activity for decades," Gould said. "In fact, prohibiting national trust banks from engaging in nonfiduciary activities would not only threaten to undermine the dynamic and evolving nature of the federal banking system but would also disrupt well over a trillion dollars in traditional activities of existing national trust banks."

The application also raises questions about potential conflicts of interest. President Trump holds the title of co-founder emeritus at World Liberty Financial, and Gould was appointed by Trump. The OCC must decide whether to approve the charter, and observers are watching how that relationship will affect the decision.

The Players and the Stablecoin

World Liberty Financial was co-founded by Donald Trump Jr. and Zach Witkoff. Zach's father, Steve Witkoff, is a real estate mogul, a friend of President Trump, and serves as the U.S. special envoy for the Middle East as well as special envoy for peace missions.

Coinbase, Circle (issuer of USDC), and Ripple (issuer of RLUSD) have applications pending.

What to Watch

The OCC will now decide whether to approve the charter for World Liberty Trust Company. The decision will test how the agency handles the close ties between a Trump-family venture and a Trump-appointed regulator. It will also shape the future of stablecoin regulation in the United States.

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